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IBM and Network Appliance Team to Take on EMC

Armonk, NY and Sunnyvale, CA - April 6,
2005 - IBM and Network Appliance (NASDAQ:NTAP) today announced
a strategic storage relationship to drive information on demand
solutions and to expand IBM's portfolio of storage solutions,
already one of the largest and most advanced sets of storage and
information management products in the industry.

As part of
the relationship, IBM and NetApp will enter into an original
equipment manufacturing (OEM) agreement that will enable IBM to
sell IBM branded solutions based on Network Appliance™
unified and open network attached storage (NAS) and iSCSI/IP SAN
solutions, including NearStore® and the NetApp V-Series
Systems, as well as associated software offerings. International
Data Corp. (IDC) recently announced that NetApp was the revenue
share leader in both NAS and iSCSI for calendar year
20041. Under this agreement, IBM will reach into more
countries than any other OEM reseller for NetApp.

The agreement also promotes enhanced
integration of NetApp® applications with IBM Tivoli Storage
Manager, aimed at delivering additional customer value. IBM Tivoli
Storage Manager is a preferred backup and recovery solution for
NetApp products and a key offering of the IBM TotalStorage Open
Software Family. In addition, with NetApp customers increasingly
seeking a complete tiered storage solution, NetApp will position
IBM as its preferred supplier of tape systems in its solutions for
NetApp customers. Finally, the two companies are exploring
additional strategic opportunities.

"The IBM relationship with Network Appliance
is a prime example of how two industry-leading companies, both of
whom actively support open standards, can team to offer information
on demand solutions," said Andy Monshaw, General Manager, IBM
Storage Systems. "The choice for customers in the management and
storage of information could not be more clear -- open solutions
from IBM and NetApp that provide systems level innovation versus
proprietary point solutions from EMC."

The storage of information in an on demand
business environment is critically important as customers are faced
with a deluge of data. Information on demand can help customers
orchestrate major portions of the information strategy picture and
achieve better business alignment.

About Network Appliance
Network Appliance is a world leader in unified storage solutions
for today's data-intensive enterprise. Since its inception in 1992,
Network Appliance has delivered technology, product, and partner
firsts that continue to drive "The evolution of storage.™"
Information about Network Appliance solutions and services is
available at www.netapp.com.

About IBM
IBM is the world's largest information technology company, with 80
years of leadership in helping businesses innovate. Drawing on
resources from across IBM and IBM Business Partners, IBM offers a
wide range of services, solutions and technologies that enable
customers, large and small, to take full advantage of the new era
of e-business. For more information about IBM, visit http://www.ibm.com.

IBM, the IBM e-business logo, and TotalStorage
are trademarks of IBM Corporation. NetApp and NearStore are
registered trademarks and Network Appliance and "The evolution of
storage" are trademarks of Network Appliance, Inc. Other products
names may be trademarks of their respective owners. Statements
concerning IBM's and Network Appliance future development plans and
schedules are made for planning purposes only, and are subject to
change or withdrawal without notice.

[1] IDC Results claim that Network
Appliance is #1 in the network-attached storage (NAS) and iSCSI
storage markets for calendar year 2004 according to IDC's Worldwide
Quarterly Disk Storage Systems Tracker Q4 2004. Additional details
on those figures are available in a NetApp press release from March
7, 2005 available online at: http://www.netapp.com/us/company/news/press-releases.